Speaking at the Economic Club of New York on Monday, BlackRock CEO Larry Fink acknowledged that the market could experience an additional 20% drop, but he stressed that the current downturn presents a buying opportunity for long-term investors.
“I view this more as a buying opportunity than a selling opportunity, although we could still see further declines,” Fink said during his appearance. Despite the market volatility, he emphasized that the situation does not pose a systemic risk to the financial system.
Fink pointed out that inflationary pressures are higher than many market participants expect, and he noted that a growing number of people already believe the U.S. is in a recession. Given these factors, Fink doesn’t anticipate the Federal Reserve cutting interest rates in the near future.
Last month, Fink also raised concerns about Bitcoin’s (BTC) potential threat to the U.S. dollar, warning that if Americans begin to view the cryptocurrency as a safer asset, it could undermine the dollar’s dominance.
The broader market, including cryptocurrencies, has been facing turmoil following U.S. President Donald Trump’s announcement of new tariffs on imported goods. Bitcoin (BTC) is currently down 5% over the past five days and 11% in the last month. The stock market has been hit even harder, with the S&P 500 and Nasdaq dropping 13% and 15%, respectively.
